Reuters reported that Shanghai steel futures climbed more than 1%on Monday to their highest since October,after fresh data boosted optimism that China's economic recovery was gaining traction,boding well for demand for both steel and its raw material,iron ore.
The most active rebar contract for May delivery on the Shanghai Futures Exchange hit a session high of CNY 3,707(USD 600)a tonne,its loftiest since October 23.
China's industrial output grew at its fastest pace in eight months in November,while its iron ore imports jumped 17%to their largest since January 2011.
Helen Lau,senior commodity analyst at UOB-Kay Hian in Hong Kong,referring to the week-long holiday next February said that"This improving macroeconomic environment will put steel mills in a better position after the Chinese New Year.If this economic recovery becomes a trend,there must be some pent up demand after then."
But slower-than-expected growth in China's overall exports and flat imports in November took some shine off the weekend factory data,although economists remain confident the economic recovery story is intact.
